Princeton Capital (OTCMKTS:PIAC) and Federal Agricultural Mortgage (NYSE:AGM) are both financial services companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Insider and Institutional Ownership

63.9% of Federal Agricultural Mortgage shares are held by institutional investors. 2.5% of Federal Agricultural Mortgage shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Federal Agricultural Mortgage pays an annual dividend of $2.32 per share and has a dividend yield of 3.0%. Princeton Capital does not pay a dividend. Federal Agricultural Mortgage has raised its dividend for 7 consecutive years.

Profitability

This table compares Princeton Capital and Federal Agricultural Mortgage’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Princeton Capital N/A N/A N/A
Federal Agricultural Mortgage 20.68% 16.69% 0.54%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Princeton Capital and Federal Agricultural Mortgage, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Princeton Capital 0 0 0 0 N/A
Federal Agricultural Mortgage 0 0 1 0 3.00

Federal Agricultural Mortgage has a consensus price target of $86.00, indicating a potential upside of 10.38%. Given Federal Agricultural Mortgage’s higher probable upside, analysts clearly believe Federal Agricultural Mortgage is more favorable than Princeton Capital.

Earnings & Valuation

This table compares Princeton Capital and Federal Agricultural Mortgage’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Princeton Capital N/A N/A N/A N/A N/A
Federal Agricultural Mortgage $556.02 million 1.49 $108.08 million N/A N/A

Federal Agricultural Mortgage has higher revenue and earnings than Princeton Capital.

Summary

Federal Agricultural Mortgage beats Princeton Capital on 10 of the 10 factors compared between the two stocks.

About Princeton Capital

Princeton Capital Corporation is a business development company specializing in the private equity investments. The firm specializes in making investments in form of middle market, mezzanine, first lien loans, second lien loans, subordinated debt, leverage buyouts, acquisitions, recapitalization, growth financing and debt financing investments. It typically invests in the United States region. The firm seeks to invest between $3 million and $50 million. It seeks to invest in companies with sales more than $35 million. It seeks to invest in companies with EBITDA between $3 million and $20 million. The firm is based in Houston, Texas with additional offices in Princeton, New Jersey.

About Federal Agricultural Mortgage

Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States. It operates through four segments: Farm & Ranch, USDA Guarantees, Rural Utilities, and Institutional Credit. The Farm & Ranch segment purchases and retains eligible mortgage loans that are secured by first liens on agricultural real estate; securitizes eligible mortgage loans, and guarantees the timely payment of principal and interest on securities representing interests in or obligations secured by pools of mortgage loans; and issues long-term standby purchase commitments (LTSPC) on designated eligible mortgage loans. The USDA Guarantees segment purchases portions of certain agricultural, rural development, business and industry, and community facilities loans guaranteed by the United States Department of Agriculture (USDA). The Rural Utilities segment purchases and guarantees securities that are backed by eligible rural utilities loans; and issues LTSPCs for pools of eligible rural utilities loans. The Institutional Credit segment engages in purchasing and guaranteeing general obligations of lenders that are secured by pools of loans eligible under the Farm & Ranch, USDA Guarantees, or Rural Utilities lines of business. Federal Agricultural Mortgage Corporation was founded in 1987 and is headquartered in Washington, District of Columbia.

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